Ch. 630                                    1997 LAWS OF MARYLAND

(1994 Replacement Volume and 1996 Supplement)

BY repealing and reenacting, with amendments,
Article—Tax—Property
Section 1-101(u)
Annotated Code of Maryland
(1994 Replacement Volume and 1996 Supplement)

BY repealing and reenacting, with amendments,
Article—Tax—General
Section 11-101(k)
Annotated Code of Maryland
(1988 Volume and 1996 Supplement)
(As enacted by Section 1 of this Act)

Preamble

WHEREAS, The telecommunications industry in Maryland and around the country is
undergoing rapid change as telecommunications companies attempt to position themselves for
increasing competition; and

WHEREAS, The General Assembly believes that competition is good for the State and
that it will lead to more diverse, more efficient, and lower priced services for consumers; and

WHEREAS, It is recognized that disparities in Maryland's telecommunications tax
policy may restrict competition; however, inhibiting factors and important uncertainties make
comprehensive tax reform difficult to accomplish at this time; and

WHEREAS, The General Assembly believes that the limited tax reforms embodied in
this Act are the first of many steps toward comprehensive tax reform and will enable our local
telephone service providers to compete more effectively; and

WHEREAS, It is the intent of the General Assembly that the reforms embodied in this
Act not result in increases in customer telephone bills, and consistent with that position, the
Public Service Commission is required to reduce the rates local telephone service providers
charge to reflect the 2% public service company franchise tax included in those rates that will
be disclosed as a separate line item on a customer's bill; now, therefore,

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Tax - General

8-401.

(a) In this subtitle the following words have the meanings indicated.
(b)(1) "Gross receipts " means total operating revenue.
(2) "Gross receipts" includes:

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